Spot Gold approached 200SMA barrier ($1259) on Monday’s strong acceleration, driven by fresh weakness of the dollar and rising political uncertainty in the US.
Fresh rally ended congestion of past three days that was generating negative signals on candlesticks and overbought slow stochastic.
Targets at $1259 and $1263 (27 Feb high) are in near-term focus and break higher could drive Gold price towards $1278 (Fibo 61.8% of $1375/$1122 descend).
Technical studies on daily chart are firmly bullish and supportive for further gains, however, the price may show hesitation at key $1257/63 barriers.
Friday’s low at $1240 is seen ideally containing dips and guarding cluster of MA supports that lay below.
Res: 1257, 1263, 1270, 1278
Sup: 1253, 1244, 1240, 1234